The cryptocurrency market experienced mixed trading on Wednesday evening, largely influenced by the Federal Reserve’s (Fed) announcement of potential interest rate cuts in the upcoming year.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin (CRYPTO: BTC) | +4.87% | $42,835 |
| Ethereum (CRYPTO: ETH) | +3.79% | $2,252 |
| Dogecoin (CRYPTO: DOGE) | +4.56% | $0.096 |
What Happened: Bitcoin witnessed a significant rebound, surpassing $43,000 on Wednesday, and again back to levels below $43k. This marks the first time since Monday’s flash crash, which, in turn, uplifted the overall crypto market.
The Federal Reserve, during the December Federal Open Market Committee (FOMC), maintained the rate at a range of 5.25%-5.5%. However, they projected a gradual reduction in the rate, with an expectation of reaching 4.6% by the end of 2024. This projection indicates the possibility of approximately three 25-basis point cuts.
Crypto-related stocks experienced significant gains during the trading session. Notably, the crypto exchange Coinbase (COIN) closed nearly 8% higher, while MicroStrategy (MSTR), led by Michael Saylor, saw a gain of 5%. Furthermore, the U.S.-listed bitcoin miners Marathon Digital (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK) increased by a range of 8% to 16% throughout the day.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Injective | +22.62% | $31.07 |
| Beam | +19.21% | $0.02 |
| Cardano | +17.88% | $0.67 |
The global crypto market cap has reached $1.54 trillion, marking a 2.28% decrease in the last 24 hours.
The Dow Jones Industrial Average reached a new high on Wednesday, driven by the Federal Reserve’s indication of multiple interest rate cuts in the coming year.
During the Fed’s meeting, they acknowledged the easing of inflation over the past year and officially revised their inflation forecast for 2024, projecting a rate of 2.4% instead of the previous 2.6%.
As a result of the Fed’s dovish outlook, bond yields and the U.S. dollar index (DXY) experienced significant decreases, which in turn led to a broad-market rally for various risk assets, including stocks and cryptocurrencies.
The S&P 500 experienced a surge of 1.37% in its value, reaching a session high of 4,707.09. Similarly, the Nasdaq Composite also saw a substantial increase, climbing by 1.38%…
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